The bears are losing big! The price of the coin rose after Grayscale applied for the SOL ETF, and 5 institutions are competing for business.

Grayscale joins the competition for Solana ETF

Grayscale Investments recently filed a document with the US Securities and Exchange Commission (SEC), proposing to convert its existing Solana trust fund into a Spot exchange-traded fund (ETF). This significant move has not only attracted widespread attention in the encryption currency market, but also directly led to a sharp rise in the price of Solana ($SOL). At the time of completion, the price of $SOL was $237.05, up 3.3% in the past 24 hours.

Image source: CoinGecko Solana ($SOL) basic price information

The Grayscale Solana Trust, which is currently managed by Grayscale, has assets under management of US$120 million, accounting for approximately 0.1% of all circulating Solana Tokens. The main purpose of this application is to convert the GSOL shares currently listed on the over-the-counter market into an exchange-traded fund listed on the New York Stock Exchange (NYSE). This means that future investors can participate in Solana's ecosystem investment more conveniently and directly.

Image Source: Grayscale Solana Trust Basic Information

ETF application competition intensifies

In this wave of competition to attack the Solana ETF, Grayscale is not acting alone. In fact, there are currently multiple asset management companies including 21Shares, Canary Capital, VanEck, and Bitwise vying to enter the Solana ETF market. Grayscale's application has brought the number of applications for Solana Spot ETF in the US market to 5, making the competition unprecedentedly fierce.

The background of this wave of Solana ETF is closely related to the optimistic atmosphere in the encryption currency market recently. In the past year, Solana has achieved an amazing 275% value growth with its high-performance and low-cost blockchain technology. Currently, its Market Cap has exceeded $112.6 billion, ranking high in the encryption currency market, attracting the attention of many institutional investors.

Regulatory environment and market prospects

It is worth noting that, although the SEC has not yet approved any Solana-related Spot ETF, the market remains cautiously optimistic about the potential review in the future. Especially in the context of Trump's election as president and the possible change of the SEC chairman, the cryptocurrency market's expectations for the regulatory environment have clearly shifted towards a more positive direction.

It is widely believed that Trump's election may bring a more friendly cryptocurrency regulatory environment. Especially when Trump nominated Paul Atkins, who had served as an SEC commissioner, as SEC chairman (although he has not yet responded), it undoubtedly added more hope for the review of cryptocurrency ETF. In fact, Grayscale has successfully converted the Bitcoin Trust Fund (GBTC) and Ethercoin Trust Fund into spot ETFs, accumulating valuable experience for the application of Solana ETF.

Investors' expectations and market significance

The potential listing of Solana ETF is of great significance to investors. It not only provides a more convenient and regulated investment channel for institutional and retail investors, but also signifies that encryption assets are steadily moving towards the mainstream financial market. This trend not only reflects the maturity of the encryption currency ecosystem, but also indicates an important milestone in the gradual acceptance of digital assets by TradFi system.

Currently, Solana, as a fast, scalable, and low Transaction Cost blockchain platform, has established a considerable reputation in the cryptocurrency industry. This ETF application can be seen as an important step in further expanding and growing the ecosystem. Industry experts generally expect that if the Solana ETF is approved, it will pave the way for ETFs of other alternative currencies, symbolizing another major breakthrough in the investment ecosystem of crypto assets.

[Disclaimer] The market is risky, and investment needs to be cautious. This article does not constitute investment advice. Users should consider whether any opinions, viewpoints, or conclusions in this article are in line with their specific situation. Investing based on this is at your own risk.

The bears lost big time! After Grayscale filed for a SOL ETF, the coin price surged, and 5 institutions are competing for business. This article was first published in 'encryption city'.